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    The long-term vision of the Department of

    Commerce is to make India a major player in world

    trade by 2020, and assume a role of leadership in the

    internaonal trade organizaons commensurate

    with Indias growing economic and demographic

    prole. In consonance with its vision of ensuring

    sustained accelerated growth of exports and

    making India a major player of world trade, the

    Government announces a Foreign Trade Policy

    (FTP) every ve years. FTP is annually reviewed

    to incorporate changes necessary to take care of

    emerging economic scenarios both domescally

    and globally.

    The underlined philosophy of supplement to

    Foreign Trade Policy is based on seven broad

    principles:

    a) Give a focused thrust to employment intensiveindustry.

    b) Encourage domesc manufacturing for inputs

    to export industry and reduce the dependence

    on imports

    c) Promote technological up gradaon of

    exports to retain a compeve edge in global

    markets

    d) Persist with a strong market diversicaon

    strategy to hedge the risks against globaluncertainty

    e) Encourage exports from the North Eastern

    Region given its special place in Indias

    economy

    f) Provide incenves for manufacturing of green

    goods recognising the imperave of building

    capacies for environmental sustainability

    Chapter-4

    External Sector and Indias Foreign TradePolicy (FTP) 2009-14

    g) Endeavour to reduce transacon cost through

    procedural simplicaon and reducon of

    human interface

    The FTP 2009-14, was updated on June, 2012.

    The salient features of this focussed on reducing

    interest burden and extension of the Interest

    Subvenon Scheme upto 31

    st

    March, 2013, focuson labour intensive sectors such as Toys, Sports

    Goods, Processed Agricultural Products and Ready-

    Made Garments. The Supplement also provided for

    extension of the Zero Duty EPCG Scheme (Export

    Promoon Capital Goods Scheme) ll 31st March

    2013 with enlarged scope. Other crical iniaves

    include: Support for Export of Green Technology

    Products, Support for Infrastructure for Agriculture

    Sector, Incenves for Promong Investment in

    Labour Intensive Sectors, Encouragement for

    Manufacturing Sector in Domesc Market, adding

    three new towns of export excellence, simplicaon

    of procedures, focussing on E enabled transmission

    of foreign exchange etc.

    In view of the Departments strategy of export

    diversicaon with focus on new markets and

    commodies, 7 new markets have been added to

    Focus Market Scheme (FMS), 7 new markets have

    been added to the Special Focus Market Scheme

    (Special FMS) and 46 new items have been added

    to Market Linked Focus Product Scheme (MLFPS).

    Addional incenves to boost exports

    Government has recently reviewed the situaon

    arising out of current economic scenario and

    declining growth in the western world. Some

    urgent steps are required for policy stability, to

    boost the exports and to reverse this declining

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    Annual Report 2012-13

    trend. Accordingly, it has been decided to:

    (a) Extend period of Interest subvenon: 2%

    Interest Subvenon Scheme on rupee export credit

    is available to certain specic export sectors. These

    are (i) Handicras, (ii) Carpets, (iii) Handloom, (iv)Readymade Garments, (v) Processed Agriculture

    Products, (vi) Sports Goods and (vii) Toys. In

    addion Small and Medium Enterprises (SME) in

    all sectors enjoy this benet. Currently the scheme

    ends on 31st March, 2013. Now this scheme of 2%

    interest subvenon to these specic sectors will be

    extended by one more year, i.e., up to 31st March,

    2014.

    (b) Widen Interest Subvenon Scheme:

    Engineering Sector contributes handsomely toboth job creaon and value addion of Indian

    manufacture. To retain this compeve edge and

    also to give a boost to our engineering exports,

    certain specic sub-sectors of engineering sector

    would be extended the benet of 2% interest

    subvenon. They will receive this benet for the

    last quarter of the current nancial year, that is,

    from 1st January 2013 to 31st March 2013. The

    general interest subvenon scheme is being

    connued ll 31st

    March, 2014. Accordingly thesespecic engineering sub-sectors would connue

    to enjoy this benet of interest subvenon ll 31st

    March, 2014.

    (c) Introduce a pilot scheme of 2 % Interest

    Subvenon for Project Exports through EXIM

    Bank: A pilot scheme of 2% interest subvenon

    is being introduced for Project Exports, through

    EXIM BANK for countries of SAARC region,

    Africa and Myanmar. This scheme is being made

    operaonal for year 2012-13 onwards, for acombined worth of 500 million USD to begin with.

    The interest subvenon would be linked to the

    Buyers Credit Scheme which was introduced in the

    last nancial year and which is being implemented

    through EXIM BANK, ECGC and the Naonal

    Export Insurance Account (NEIA). The essence of

    the scheme is to boost Indias Project exports in

    the SAARC/African region and to our neighbour

    Myanmar, by providing long term concessional

    credit through the EXIM BANK, as co-nancing for

    the project exports in infrastructure sectors. Aer

    the experience of this inial pilot, the upper cap

    may be raised. The eligible cases for such incenve

    would be sponsored by EXIM BANK.

    (d) Incenve on Incremental Exports: It has

    been decided to grant incenve on incremental

    exports made during the period January-March

    2013 over the base period January-March 2012.

    The incenve would be granted to an IEC holder

    at the rate of 2% on the incremental growth of

    exports made to USA, EU and Asian Countries

    during this parcular quarter i.e., January-March

    2013. Certain exports like deemed exports, service

    exports, third party exports, export-turnover of SEZ

    units etc. would not be eligible under the scheme.

    Thus there will be focus on increasing export to

    certain specic desnaons.

    (e) Addions in the Chapter 3 Schemes: Certain

    products under the Focus Product Scheme and

    markets under Focus Market Scheme have been

    added. Similarly some addions have been made

    to MLFPS/VKGUY. These addions under FocusMarket Scheme (FMS)/Focus Product Scheme (FPS)/

    Market Linked Focus Product Scheme (MLFPS)/

    Vishesh Krishi & Gram Udyog Yojna (VKGUY) would

    be eligible for incenves on exports from 1.1.2013

    which has been noed through Public Noce 42

    dated 31.12.2012.

    Scheme-wise details

    Duty neutralizaon / remission schemes are based

    on the principle and the commitment of the

    Government that Goods and Services are to be

    exported and not the Taxes and Levies. Purpose is

    to allow duty free import / procurement of inputs

    or to allow replenishment either for the inputs

    used or the duty component on inputs used. There

    are two categories of these schemes namely,

    pre-export schemes and the post-export schemes.

    Brief of these schemes alongwith the amendments

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    CHAPTER-4 External Sector and Indias Foreign Trade Policy (FTP) 2009-14

    carried out during the current year are given below.

    Pre - Export Schemes

    Advance Authorizaon Scheme

    Scheme allows duty free import of inputs,

    along with fuel, oil, catalyst etc., required for

    manufacturing the export product. Inputs are

    allowed either as per Standard Input Output Norms

    (SION) or on adhoc Norms basis under actual user

    condion. Norms are xed by Technical Commiee

    i.e., Norms Commiee. This facility is available

    for physical exports (also including supplies to

    SEZ units & SEZ Developers) and deemed exports

    including intermediate supplies. Minimum value

    addion prescribed is 15%, except for certain

    items. Exporter has to full the export obligaon

    over a specied me period, both in quanty

    and value - wise. This year the facilies to club

    authorizaons have been simplied and powers

    have been decentralized to RAs. Export obligaon

    period in respect of Advance Authorisaons have

    been reduced to 18 months from 36 months. The

    validity of Advance Authorisaons / Duty Free

    Import Authorisaon (DFIAs) has been reduced

    from 24 months to minimum 12 months or up to

    31.3.14 from issue date, whichever is more.

    Duty Free Import Authorizaon (DFIA)

    DFIA Scheme has been made operaonal from

    01.05.2006. One of the objecves of the scheme

    is to facilitate transfer of the authorisaon or

    the inputs imported as per SION, once export is

    completed. Provisions of DFIA Scheme are similar to

    Advance Authorisaon scheme. A minimum value

    addion of 20% is required under the scheme.

    Schemes for Gems & Jewellery Sector

    Gems & Jewellery exports constute a major

    poron of our total merchandise exports. It is an

    employment oriented sector. Exports from this

    sector suered signicantly on account of the

    global economic slowdown.

    Duty free import / procurement of precious metal

    (Gold / Silver / Planum) from the nominated

    agencies is allowed either in advance or as

    replenishment. In addion, exporters of Gems &

    Jewellery items are allowed access to duty Free

    Import of consumables for export producon

    upto a certain specied percentage of FOB value

    of previous years export. List of items allowed for

    duty free import by Gems & Jewellery sector has

    been expanded by inclusion of addional items

    such as tags and labels, security censor on card,

    staple wire and poly bag. This will reduce the cost

    of the product to some extent.

    Monitoring of import of Gold by Nominated

    Agencies as per the new guidelines has begun andthis would result in beer compliance.

    Post- Export Schemes

    Duty Drawback Scheme

    Duty Drawback scheme allows refund of customs

    duty and the excise duty on the inputs used in the

    manufacture of the export product at a specied

    percentage of FOB value of exports. Service Tax on

    the input services has also been factored in the All

    Industry rate of Duty Drawback. Duty drawbackscheme for physical exports is being administered

    by the Department of Revenue and that of deemed

    exports, by the DGFT.

    Duty drawback rates for a number of products have

    been reduced on account of reducon in tari and

    roll back of adhoc increase eected earlier.

    The products which were in the DEPB scheme

    are given appropriate rates of duty drawback so

    that taxes suered by the inputs which go in the

    manufacture of the export product are rebated.

    The Duty Drawback Scheme was announced on

    20.09.2011 in place of DEPB scheme.

    Other Policy Iniaves

    Interest subvenon of 2 per cent has been

    extended upto March 2014. It has also been

    extended to labour intensive sectors, namely, Toys,

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    Annual Report 2012-13

    Sports Goods, Processed Agricultural Products

    and Ready-Made Garments, in addion to four

    sectors viz. Handicras, Carpets, Handlooms and

    SMEs beneng from the scheme earlier. With

    eect from January 2013, certain sub-sectors of

    Engineering sector has also been added to the list

    for 2% Interest Subvenon.

    Time period of export realizaon for non-status

    holder exporters has been increased to 12 months,

    at par with the Status holders. This facility had

    been extended upto 30.09.2012. Further extension

    is under consideraon of RBI.

    Vishesh Krishi and Gram Udyog Yojana (Spe-

    cial Agriculture and Village Industry Scheme)

    [VKGUY]

    Objecve of this scheme is to promote employment

    generaon in rural and semi urban areas. Duty

    Credit Scrip benets are granted with an aim to

    compensate high transport costs and to oset

    other disadvantages. VKGUY has been gradually

    expanded to include export of Agricultural Produce

    and their value added products; Minor Forest

    Produce and their value added variants; Gram

    Udyog Products; and Other Products, as noed

    under Appendix 37A of HBP vol.1, from me tome.

    Exporters of noed products are entled for

    Duty Credit Scrip equivalent to 5% of FOB value

    of exports (in free foreign exchange) for exports

    made from 27.8.2009 onwards. Exporter who has

    availed benets of Drawback, at rates higher than

    1% of FOB value of exports; or Specic DEPB rate

    (i.e. other than Miscellaneous Category Sr.Nos.

    22D & 22C of Product Group 90); or Advance

    Authorizaon or Duty Free Import Authorizaon for

    import of inputs (other than catalysts, consumables

    and packing materials) for the exported product

    for which Duty Credit Scrip under VKGUY is being

    claimed then rate is reduced to 3%. Few products

    are also eligible to addional 2% over & above the

    5% or 3%, as admissible for specied products in

    Appendix 37A of HBP vol.1.

    In case of Status Holder, higher incenve is

    available in the form of duty credit scrip (Agri.

    Infrastructure Incenve Scrip) equal to 10% of

    FOB value of agricultural exports, limited to Rs.

    100 crore per annum, for products covered under

    ITC HS Chapters 1 to 24. This includes incenve

    under VKGUY scrip. These scrips can be ulised

    to import Capital Goods and equipments for Cold

    Storage Units, Pack-houses etc. These scrips will

    also be eligible for import of following specied

    equipments for seng up of Pack-houses:

    Packing grading equipments for fruits and

    vegetables

    Equipments for ripening of fruits including

    ethylene generator

    Adiabac humidiers for cold rooms

    Gas sensor and controlled system covering

    Co2, ethylene and oxygen levels

    Ethylene scrubbers

    Co2 scrubbers

    Blast freezers for IQF plants

    Doors for gasght rooms, applicaons like CA,

    Banana/fruit ripening

    Nitrogen generators

    Gas controlling systems for CA stores

    Bulk bins for CA stores

    Reach stackers for cold stores and

    warehouses

    Belt driven conveyors for bulk handling of cargo

    Gantry cranes, unloading, mechanized loaders

    for bulk and break bulk cargo

    For import of Cold Chain Equipment, this Incenve

    Scrip shall be freely transferable amongst Status

    Holders as well as to units in the Food Parks.

    Focus Market Scheme (FMS)

    For oseng high freight cost and other

    externalies to select internaonal markets with a

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    CHAPTER-4 External Sector and Indias Foreign Trade Policy (FTP) 2009-14

    view to enhance Indias export compeveness in

    these countries, Focus Market Scheme has been

    launched w.e.f. 1.4.2006. Exporters of all products

    to noed countries (as in Table 1 & Table 2 of

    Appendix 37C of HBP vol.1) shall be entled for

    Duty Credit Scrip equivalent to 3% of FOB value

    of exports. Another 7 markets added to Focus

    Market Scheme (FMS) w.e.f. 5th June, 2012. These

    countries are Algeria, Aruba, Austria, Cambodia,

    Myanmar, Netherland Anlles, and Ukraine. So

    far, the Scheme covers a total of 119 markets.

    However, addional duty credit scrip @1% FOB

    value of exports is given to markets listed in Table

    3 of Appendix 37C with eect from 1.4.2011 under

    Special Focus Market Scheme. 7 new markets have

    been added to the Special Focus Market Scheme

    (Special FMS) w.e.f. 5th June, 2012 taking the total

    countries under Special FMS to 48. These countries

    are Belize, Chile, El Salvador, Guatemala, Honduras,

    Morocco and Uruguay. Another ve new markets

    have been added to FMS w.e.f. 01.01.2013. These

    countries are Cayman islands, New Zealand, Latvia,

    Lithuania and Bulgaria. One new market namely

    Eritrea has been added to the Special FMS w.e.f

    from 01.01.2013.

    Focus Products Scheme (FPS)

    To incenvise export of such products which have

    high export intensity / employment potenal, so

    as to oset infrastructure ineciencies and other

    associated costs involved in markeng of these

    products, a scheme called Focus Products Scheme,

    has been introduced w.e.f. 1.4.2006.

    Exports of noed products (as in Appendix 37D of

    HBP vol.1) to all countries (including SEZ units) shall

    be entled for Duty Credit Scrip equivalent to 2% or

    5% of FOB value of exports (in free foreign exchange)

    for exports made from 27.8.2009 onwards. Further,

    Bonus Benets @2% of FOB value of exports is given

    over and above the exisng benet for specied

    products covered under Appendix 37D for exports

    made from 1.4.2010 onwards. So far, around 1200

    products have been covered at 8 digit level under

    the scheme, which include leather products and

    footwear, handloom products, handmade carpets

    and other texle oor covering, handicras, coir

    and jute products, technical texles, engineering

    products, green technology products, electronic

    products, etc.

    Market linked Focus Products Scrip (MLFPS)

    To give signicant boost to market penetraon for

    specic products in specied markets, a variant

    under Focus Product Scheme called Market Linked

    Focus Products Scrip has been introduced from

    1.4.2008. Export of products / sectors of high

    export intensity / employment potenal (which

    are not covered under present FPS List) would be

    incenvised @ 2% of FOB value of exports (in freeforeign exchange) under FPS when exported to the

    Linked Markets (countries), which are not covered

    in the present FMS List, as noed in Appendix

    37D of HBP vol.1, for exports made from 27.8.2009

    onwards. Further, all Garments covered under

    Chapter 61 and Chapter 62 of ITC HS Classicaon

    of Export and Import Items have been extended

    the benet of duty credit scrip @2% of FOB value of

    exports to USA and EU from 1.4.2011 ll 31.3.2012.

    This benet has now been extended ll 31st March2013.

    Presently the products covered under the scheme

    include Motor vehicles, auto-components, bicycles

    and parts, apparels, knied and crocheted fabrics,

    pharma products, value added plasc and rubber

    goods, glass products, dyes and chemicals,

    household arcles, Machine Tools, Earth Moving

    equipments, Transmission towers, electrical

    and power equipments, steel tubes, pipes and

    galvanized sheets, Compressors, Iron and Steel

    Structures, Auto components, three wheelers and

    coon woven fabrics etc. The countries covered

    under the Scheme include Algeria, Egypt, Kenya,

    Nigeria, South Africa, Tanzania, Brazil, Ukraine,

    Australia, New Zealand, Cambodia, Vietnam, Japan

    and China amongst others. There are around 5000

    products so far covered at 8 digit level. Table 2 of

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    Annual Report 2012-13

    Appendix 37D of HBP vol.1 may be referred for the

    list of products and countries.

    Served from India Scheme (SFIS)

    The objecve of the Scheme is to accelerate growth

    in export of services so as to create a powerfuland unique Served From India brand, instantly

    recognized and respected the world over. Indian

    Service Providers, of services listed in Appendix 41 of

    HBP vol.1, who have free foreign exchange earning

    of at least Rs.10 lakh in current nancial year shall

    qualify for Duty Credit Scrip. For Individual Indian

    Service Providers, minimum free foreign exchange

    earnings would be Rs. 5 lakh. Service Providers

    are entled to Duty Credit Scrip @10% of the free

    foreign exchange earned. However, Services andService Providers listed in Para 3.6.1 of Hand Book

    of Procedures vol.1 are not eligible. Imports are

    allowed with actual user condion for import of

    capital goods, oce equipments, consumables,

    vehicles which are in the nature of professional

    equipment to the service provider, etc.

    Status Holders Incenve Scrip (SHIS)

    With an objecve to promote investment in

    upgradaon of technology of some specied

    sectors such as leather, texles, Jute, handicras,plascs, basic Chemicals, rubber products, glass

    and glassware, paper and books, paints and

    allied products, plywood and allied products,

    electronics products, sports goods and toys,

    engineering products viz. iron and steel, pipes

    and tubes, ferro-alloys etc., Status Holders shall

    be entled to incenve scrip @ 1% of FOB value

    of exports made during 2009-10 for six sectors,

    viz: Leather Sectors (excluding nished leather);

    Texles and Jute Sector; Handicras; Engineering

    Sector (excluding Iron & Steel, Non-ferrous Metals

    in primary or intermediate forms, Automobiles &

    two wheelers, nuclear reactors & parts and Ships,

    Boats and Floang Structures); Plascs; and Basic

    Chemicals (excluding Pharma Products), and

    expanded for exports in 2010-11 and 2011-12 of

    addional sectors listed in para 3.10.8 of Hand

    Book of Procedures vol.1, in the form of duty credit

    [subject to prescribed exclusions as specied in

    Policy] with actual user condion. This shall be over

    and above any duty credit scrip claimed/availed

    under Chapter-3 of FTP. This facility is available

    upto 31.3.2013.

    Status holders are issued Status Holders Incenve

    Scrip (SHIS) to import Capital Goods for promong

    investment in up-gradaon of technology of some

    specied labour intensive sectors like Leather,

    Texle & Jute, Handicras, Engineering, Plascs

    and Basic Chemicals. It is now decided that up to

    10% of the value of these scrips will be allowed to

    be ulized to import components and spares of

    capital goods imported earlier. Such a dispensaon

    was not available earlier.

    These scrips were subject to Actual User Condion

    and were not transferable. Since a status holder

    may or may not have manufacturing facility, limited

    transferability of SHIS has been allowed. However,

    such Transferee shall have to (a) be a status holder

    and (b) have manufacturing facility.

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    CHAPTER-4 External Sector and Indias Foreign Trade Policy (FTP) 2009-14

    Policy iniaves

    Box 4.1

    A. Policy Iniave Announced in the Annual Supplement to FTP on 5th June, 2012

    7 new markets have been added to Focus Market Scheme (FMS). These countries are Algeria,Aruba, Austria, Cambodia, Myanmar, Netherland Anlles, and Ukraine.

    7 new markets have been added to the Special Focus Market Scheme (Special FMS). These countriesare Belize, Chile, El Salvador, Guatemala, Honduras, Morocco, and Uruguay.

    46 new items have been added to Market Linked Focus Product Scheme (MLFPS). This has theeect of including 12 new markets for the rst me.

    MLFPS has been extended ll 31 st March 2013 for export to USA and EU in respect of items fallingin Chapter 61 and Chapter 62.

    100 new items have been added to the Focus Product Scheme (FPS) list.

    3 new towns have been declared as Towns of Export Excellence (TEE). These are Ahmedabad(Texles), Kolhapur (Texles), and Saharanpur (Handicras).

    Export of specied products through noed Land Customs Staons of North Eastern Region has beenprovided addional incenve to the extent of 1% of FOB value of exports. This benet is in addion toany other benet that may be available under Foreign Trade Policy in respect of these exports.

    Now Duty Credit Scrips shall be permied to be ulized for payment of Excise Duty for domescprocurement. Earlier only scrips under SFIS were so permied for procurement of goods fromdomesc market. Now all scrips would be permied to source from domesc market so as toencourage manufacturing, value addion and employment. This will be an important measure forimport substuon and will help in saving of foreign exchange in addion to creang addionalemployment.

    It is now decided that up to 10% of the value of Status Holders Incenve Scrip (SHIS) will beallowed to be ulized to import components and spares of capital goods imported earlier. Sincea status holder may or may not have manufacturing facility, it is now decided to allow limited

    transferability of SHIS scrip. However, such Transferee shall have to (a) be a status holder and (b)have manufacturing facility.

    Now Agri. Infra. scrips will be eligible for import of 14 specied equipments for seng upof Pack-houses.

    The Union Minister for Commerce, Industry and Texles, Shri Anand Sharma releasing

    the Annual Supplement 2012-13 to the Foreign Trade Policy 2009-14, in New Delhi on June 05, 2012

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    Annual Report 2012-13

    Box 4.2

    B. Measures announced on 26th December, 2012

    (a) Extending period of Interest subvenon

    2% Interest Subvenon Scheme on rupee export credit is available to certain specic export sectors.

    These are (i) Handicras, (ii) Carpets, (iii) Handloom, (iv) Ready - made Garments, (v) Processed

    Agriculture Products, (vi) Sports Goods and (vii) Toys. In addion Small and Medium Enterprises

    (SME) in all sectors enjoy this benet. Currently the scheme ends on 31st March, 2013. Now this

    scheme of 2% interest subvenon to these specic sectors has been extended by one more year,

    i.e., up to 31st March, 2014.

    (b) Widening of Interest Subvenon Scheme

    Engineering Sector contributes handsomely to both job creaon and value addion of Indian

    manufacture. To retain this compeve edge and also to give a boost to our engineering exports,

    certain specic sub-sectors of engineering sector would be extended the benet of 2% interest

    subvenon. They will receive this benet for the last quarter of the current nancial year, that

    is, from 1st January 2013 to 31st March 2013. The general interest subvenon scheme is beingconnued ll 31st March, 2014. Accordingly these specic engineering sub-sectors would connue

    to enjoy this benet of interest subvenon ll 31st March, 2014.

    (c) Introduce a pilot scheme of 2 % Interest Subvenon for Project Exports through EXIM

    Bank

    A pilot scheme of 2% interest subvenon is being introduced for Project Exports, through EXIM

    BANK for countries of SAARC region, Africa and Myanmar. This scheme is being made operaonal

    for year 2012-13 onwards, for a combined worth of 500 million USD to begin with. The interest

    subvenon would be linked to the Buyers Credit Scheme which was introduced in the last nancial

    year and which is being implemented through EXIM BANK, ECGC and the Naonal Export Insurance

    Account (NEIA). The essence of the scheme is to boost Indias Project exports in the SAARC/Africanregion and to our neighbour Myanmar, by providing long term concessional credit through the

    EXIM BANK, as co-nancing for the project exports in infrastructure sectors. Aer the experience

    of this inial pilot, the upper cap may be raised. The eligible cases for such incenve would be

    sponsored by EXIM BANK.

    (d) Incenve on Incremental Exports

    It has been decided to grant incenve on incremental exports made during the period January-

    March 2013 over the base period January-March 2012. The incenve would be granted to an

    IEC holder at the rate of 2% on the incremental growth of exports made to USA, EU and Asian

    Countries during this parcular quarter i.e., January-March 2013. Certain exports like deemed

    exports, service exports, third party exports, export-turnover of SEZ units etc. would not be eligible

    under the scheme. Thus there will be focus on increasing export to certain specic desnaons.Some specic type of exports would not be eligible. Detailed nocaon would follow.

    (e) Addions in the Chapter 3 Schemes

    Certain products are being added to the Focus Product Scheme. A few markets are being added to Focus

    Market Scheme. And similarly some addions are being made to MLFPS / VKGUY. These addions under

    Focus Market Scheme (FMS)/ Focus Product Scheme (FPS) / Market Linked Focus Product Scheme

    (MLFPS) / Vishesh Krishi & Gram Udyog Yojna (VKGUY) would be noed separately.

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    CHAPTER-4 External Sector and Indias Foreign Trade Policy (FTP) 2009-14

    EPCG Scheme

    A. Changes in Zero duty EPCG Scheme

    (i) For connued technological up gradaon of

    exports sector this Scheme has now been

    extended up to 31st March 2013. There is

    no change in the coverage of the sectors

    beneng from this scheme.

    (ii) Zero Duty EPCG Scheme shall be available

    to such exporter who may have obtained

    benet under Technology Upgradaon Fund

    Scheme (TUFS) but the exact line of business

    in TUFS is dierent from the line of business

    under EPCG. Further, if it is the same line of

    business, Zero Duty EPCG Scheme could sll

    be availed if the benets of TUFS alreadyavailed are surrendered /refunded with

    applicable interests.

    (iii) Up to 31st March 2012, the benet of Zero

    Duty EPCG Scheme was not available to such

    applicants who would have availed benet

    of Status Holder Incenve Scrip (SHIS). It is

    now decided that if such SHIS benet already

    availed is surrendered subsequently with

    applicable interest to the concerned RA, and

    then the benet of Zero Duty EPCG Schemewould be extended.

    B. Specic Export Obligaon (EO) in respect of

    export of Green Technology Products shall be

    75% of the normal EO as menoned in the

    Para 5.1 or Para 5.2 of FTP. The list of Green

    Technology products is given in Para 5.24 of

    HBP vol.1. (w.e.f. 05.06.2012).

    C. For units located in North Eastern Region

    including Sikkim, specic EO shall be 25% of

    the EO as spulated in Para 5.1 or 5.2 of FTP.

    D. Post export EPCG Duty Credit Scrip(s)

    A new scheme Post export EPCG Duty Credit

    Scrip(s)has been introduced w.e.f. 05.06.2012 with

    following salient features:

    (a) EPCG Duty Remission Scheme shall be

    available to exporters who intend to import/

    procure capital goods on full payment of

    applicable dues and choose to opt for this

    scheme.

    (b) Duty paid on capital goods (excluding poron

    CENVATed/ Rebated) shall be remied inthe form of freely transferable duty credit

    scrip(s).

    (c) Specic EO under this scheme shall be 85%

    of the applicable specic EO, if the imports of

    such capital goods had taken benet of duty

    exempon.

    (d) Duty remission shall be in proporon to the

    EO fullled.

    (e) These duty credit scrip(s) can be used forpayment of applicable custom dues for

    imports and applicable excise dues for

    domesc procurement.

    (f) All provisions of the exisng EPCG scheme

    shall apply insofar as they are not inconsistent

    with this scheme.

    Export Oriented Units.

    A Commiee under the chairmanship of Shri S.C.

    Panda was constuted to review and revamp theEOU Scheme. The Commiee has submied its

    report in July, 2011 which is under consideraon

    with the Department of Commerce.

    Deemed Export Issues

    Chapter 8 of Foreign Trade Policy (FTP) menons

    that various categories of supply which are

    regarded as deemed exports under FTP, provided

    goods are manufactured in India. In deemed

    exports transacons, goods supplied do not leave

    country. Essenally, Deemed Export Scheme is

    for encouraging import substuon and mainly

    covers such supply of goods which are otherwise

    allowed at Zero custom duty. In case of EPCG

    authorizaons, deemed export benet is allowed

    even though import is allowed at concessional

    duty as well. For deemed export supplies, benet

    of Advance Authorizaon, duty drawback of dues

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    paid on inputs and refund of Terminal Excise Duty

    (TED) paid on nal goods/exempon, as applicable,

    as per Foreign Trade Policy, are available.

    Chapter 8 of the FTP and HBP vol.1, relating

    to deemed exports has been completely re-written in the Annual Supplement to the FTP

    2009-14, released on 05.06.2012. In this re-

    written Chapter, provisions of FTP have been

    aligned with relevant Customs Notifications,

    clarifications, issued by Policy Interpretation

    Committee, have been incorporated and

    language has been re-drafted to make it more

    user friendly. The benefits available under

    various categories of deemed exports supplies

    have been prescribed in a tabulated form, which

    removes all ambiguities.

    During Financial year 20011-12, an amount of

    Rs.740 crores was spent by different Regional

    Authorities of DGFT. In the beginning of 2012-

    13, approved claims amounting to Rs.320 crores

    were pending for payment. During this year,

    amount of Rs.850 crores has been earmarked

    for this Directorate for meeting claims of TED

    refund/Deemed export drawback. Up to the

    end of December, 2012, DGFT(HQ) has released

    Rs.769.33 crores to its different RegionalAuthorities.

    EDI Iniaves

    DGFT is the rst Indian Government organizaon

    to start Web Based applicaon processing (1997)

    using Secured Digital Cercates (2048 Byte

    Key encrypon- 2004). Currently, DGFT receives

    Shipping Bills, Bank Realizaon Cercates and

    RCMC from Customs, Banks and Export Promoon

    Council respecvely through Digitally Secured

    Formats.

    Introducon of e-BRC system

    DGFT has established an e-BRC system to

    receive details of export proceeds from banks in

    digitally signed secured electronic format. DGFT

    dispensed with the issuance of physical copy of

    BRCs by banks for the purpose of DGFT use and

    made e-BRC mandatory w.e.f. 17.8.2012. Earlier

    Banks issued Bank realization Certificates (BRCs)

    to exporters in physical formats. The e-BRC

    system will significantly lower the transaction

    cost of exporters who will not have to visit or

    pay for BRC issuance to banks. Exporters can

    print BRC details on the DGFT site and submit

    it to any Department, which can, in turn verify

    the accuracy of the data from the DGFT website.

    This would mean all round manpower and

    effort savings for the Government agencies

    like Customs, Central Excise and at the State

    Government level, the Departments dealing

    with imposition and refund of Value Added

    Tax (VAT). These departments can source such

    information from the DGFT. The system mayalso supplement RBIs efforts towards Foreign

    Exchange Realization Monitoring.

    a) All authorizaons are being issued online

    by DGFT. Message exchange with Customs

    has been implemented for Advance Authori-

    zaon, EPCG and DFIA. Exporters can track,

    monitor their applicaons online at the DGFT

    website.

    b) A system has been established to receive

    RCMC from the Export Promoon Councils,Commodity Boards and FIEO in secured online

    format. DGFT oces will not ask for a copy of

    the RCMC from the Exporters.

    c) Electronic Fund Transfer facility is being used

    by exporters for payment of applicaon fee.

    The facility has been extended to addional

    banks. So far addional 7 Banks have been

    added into the exisng number of 13 (Total:

    20 Banks).

    d) Import/Export Code (IEC) is the mandatory

    registraon for the exporters. Steps have been

    taken to simplify the issuance of IEC. For this

    purpose, an online Module has been developed

    with eect from 1st January 2011 for receipt of

    applicaon, processing and issuance of IEC.

    Integraon with PAN database for validaon is

    likely to be completed shortly.

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    CHAPTER-4 External Sector and Indias Foreign Trade Policy (FTP) 2009-14

    Task Force on Transacon Costs

    Department of Commerce had constuted a Task

    Force on Transacon Costs in October, 2009 to

    assess the procedural bolenecks aecng Indias

    exports and imports.Report of the Transacon Cost has been released

    on 8.2.2011 resulng in reducon of approximately

    Rs. 2100 crores of transacon cost.

    Subsequent to release of report, 21 issues relang

    to transacon cost have been idened. These are

    under consultaon for agreement /implementaon

    from 8 departments / ministries that include

    Agriculture (1), revenue (7), banking (7), commerce &

    industry (2), railway (1), shipping (1) and environment

    & forest (1). Following is the status of 21 issues:

    Sr.

    No.Status

    Number

    of Issues

    Esmated reduc-

    on in Transac-

    on Cost

    (in Rs. crore)

    1 Implemented 3 Issues 395

    2 Under implementaon 6 Issues 565

    3 Not Agreed but not

    Dropped

    2 Issues 2200

    4 Dropped 10 Issues 520

    Total 21 Issues 3680

    As can be seen from the table, Transacon Cost

    issues amounng to Rs. 395 crore have been

    implemented since February, 2011. These include

    web based tracking and monitoring soware for

    Advance Authorizaon and EPCG monitoring;expedious issuance of NOC from Animal

    Quaranne Cercaon Services (Department

    of Animal Husbandry) for import consignment of

    nished and semi-nished leather and; allowing

    duty free commercial shipment through courier

    subject to certain condions.

    Norm Commiee

    Norm Commiee performs the funcon of

    xaon of Standard Input Norm (SION), revisionof exisng SION and xaon of adhoc Norms

    for various products. This is an Inter Ministerial

    Commiee, wherein representave of concerned

    administrave Ministries also represented. There

    are Seven Norms Commiee dealing with various

    commodity groups and their progress during the

    period April, 2012 to December, 2012 is given

    below.

    Norms Com-miee (NC)

    Commodity group Number of caseswhere adhoc-norms

    xed

    Fixaon ofnew SION

    Modicaon inexisng SION

    Total

    NC-I Engineering 470 Nil Nil 470

    NC-II Electronics 364 7 1 372

    NC-III Pharma Organic 843 Nil 3 846

    NC-IV Chemicals & Allied 758 Nil 3 761

    NC-V Texles 608 1 Nil 609

    NC-VI Food, Marine, Misc. 98 Nil 1 99

    NC-VII Plasc & Rubber 372 Nil 5 377

    Policy Relaxaon Commiee (PRC)

    In terms of Para 2.5 of FTP, DGFT may pass such

    orders or grant such relaxaon or relief, as he may

    deemed t and proper, on grounds of genuine

    hardship and adverse impact on trade, DGFT may,

    in public interest, exempt any person or class or a

    category of persons from any provision of FTP or any

    procedure and may, while granng such exempon,

    impose such condions as he may deemed t. Such

    request may be considered only aer consulng

    with Norms Commiee/EPCG Commiee/PRC, as

    the case may be. During the nancial year 2012-13,

    the commiee received as many as 1128 requests

    for relaxaon in Policy/Procedures. Out of which

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    981 cases were disposed of during 33 meengs

    conducted up to 31.12.2012.

    Import Cell

    Import Cell considers the applicaons for items

    which are restricted for import. The applicaons

    for issuance of import authorizaon for Restricted

    Items (such as Live Animals, Scrap of rubber / plasc,

    Refrigerant Gases and Arms and Ammunion

    etc.), are considered by an Exim Facilitaon

    Commiee (EFC), consisng of representaves

    from various Administrave Ministries and

    Departments, headed by Addl. DGFT. Such cases

    are decided on the basis of wrien technical inputs

    / comments of concerned Administrave Ministry

    / Department. Apart from this permissions are also

    granted under para 2.11 of FTP with the approval

    of DGFT for the items (such as Maize and Oats etc),

    import of which are allowed through State Trading

    Enterprises. Out of total 704 applicaons received

    in Import Cell during 2012-13 (upto 31st Dec 2012),

    as many as 435 applicaons (which constute

    61.78% share) have been given import permission/

    EXIM facilitaon Commiee meengs are also held

    on every month on third Thursday.

    Export Cell

    Export Cell deals with licensing of the items which

    are Restricted in the ITC (HS) Classicaon for export

    (other than SCOMET items). The applicaons for

    issuance of export authorizaon for Restricted

    Items e.g. as Onion seeds, live animals, seaweeds,

    husk, fodder, chemicals under Montreal Protocol

    are considered by an Exim Facilitaon Commiee

    (EFC) chaired by Addl. DGFT with representaves of

    various Ministries and Departments. Such cases aredecided on the basis of wrien inputs/comments

    and /or No Objecon Cercate of concerned

    Ministry/Department. Meeng of EFC is generally

    held once in a month. In addion, claricaons on

    Export Policy are also issued.

    Out of the total 153 applicaons received for

    export permission during 2012-13 (upto 31st

    December 2012), as many as 133 applicaons

    (which constute approx. 86% share) have been

    given export permission and remaining 20 are

    pending with the concerned Ministry/Dep. for

    want of wrien technical comments.

    SCOMET

    Special Chemicals, Organisms, Materials,

    Equipment and Technologies (SCOMET) items are

    dual-use items having potenal for both civilian

    and military applicaons. Export of such items is

    either restricted, requiring an authorizaon for

    their export, or is prohibited. The export policy

    relang to SCOMET items is given in Paragraph

    2.49A of Hand Book of Procedures in Vol. I, 2009-

    14 and the list of such items is given in Appendix

    3 to Schedule 2 of ITC (HS) Classicaon of Export

    and Import Items. There are eight categories of

    such items.

    All applicaons for export of SCOMET items are

    considered on merits by an Inter-Ministerial

    Working Group (IMWG) in the DGFT under the

    Chairmanship of Addional Director General of

    Foreign Trade as per guidelines and criteria laid

    down in Para 2.49A of the Handbook of Procedure

    Vol. 1. Members include, inter-alia, MEA, Cabinet

    Secretariat, DRDO, ISRO, DAE and Dep. of C&PC.

    No export permission is required for supply of

    SCOMET items from DTA to SEZ. However, Export

    permission is required if the SCOMET items are to

    be physically exported outside the country from

    SEZ.

    There is an increasing trend in export of SCOMET

    items from India. The total value of exports of

    SCOMET items in 2011-12 were US$ 50.61 million

    while during 2012-13, upto December 2012,

    authorizaons for items worth US$ 336.15 million

    have been issued.

    Commodity Specic Measures- Exports

    The export of following agricultural products which

    are sensive in nature due to their direct impact on

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    CHAPTER-4 External Sector and Indias Foreign Trade Policy (FTP) 2009-14

    the public as well as domesc trade and industry

    are monitored regularly by the Government and

    suitable modicaons are made from me-to-

    me in order to ensure adequate availability for

    domesc consumpon and to keep the prices

    under check.

    The policy provisions as on 11.02.2013 are as

    under:-

    1. Edible oil

    (i) The export of all edible oils prohibited w.e.f.

    17.03.2008.

    (ii) Vide Nocaon No. 24(RE-2012)/2009-14

    dated 19.10.2012 ban on export of edible oils

    has been extended ll further orders.

    (iii) Vide Nocaon No. 92 dated 01.04.2008

    and Nocaon No. 33 dated 19.08.2008,

    certain exports of edible oil were granted

    exempon from this prohibion, namely (a)

    export of Castor Oil (b) Deemed export of

    edible oils (as input raw material) from DTA

    to 100% EOUs for producon of non-edible

    goods to be exported and (c) export of oil

    produced out of minor forest produce even

    if edible, ITC(HS) Code 15159010, 15159020,15159030, 15159040, 15179010 and

    15219020. These exempons will connue

    ll further orders.

    (vi) Vide Nocaon No. 32 dated 05.02.2013

    export of coconut oil has been permied

    through all EDI ports and through Land

    Custom Staons (LCS) to be noed

    separately. Earlier, export of coconut oil

    was permied only from Cochin Port. With

    eect from 05.02.2013, export of edible oils

    from Domesc Tari Area (DTA) to Special

    Economic Zones (SEZs) to be consumed by

    SEZ units for manufacture of processed food

    products, subject to applicable value addion

    norms has also been exempted from ban on

    export of edible oils. Peanut Buer, ITC (HS)

    Code 15179020 has been exempted from

    ban vide Nocaon No. 31(RE-2012)/2009-

    14 dated 04.02.2013.

    (v) Export of edible oils was permied in branded

    consumer packs of upto 5 Kgs with a limit of

    10,000 tons from custom EDI Ports. This wasrst noed on 20.11.2008 and extended

    from me-to-me. Through Nocaon No.

    24(RE-2012)/2009-14 of 19.10.2012, the limit

    was increased to 20,000 tons. Vide Nocaon

    No. 32 dated 05.02.2013 export of edible oils

    in branded consumer packs of upto 5 Kgs has

    been permied with a Minimum Export Price

    of USD 1500 per MT.

    (vi) Through Nocaon No. 87 dated 05.12.2011,

    exempon has been given for export of 2400MTs per annum of Edible Oils to Bhutan.

    2. Non Basma Rice

    (i) Export of non-basma rice was prohibited

    vide Nocaon No. 38 dated 15.10.2007 and

    was completely prohibited vide Nocaon

    No. 93 dated 1st April, 2008. Exempon was

    given for export under Food Aid Programme

    and export to Maldives under Bi-lateral Trade

    Agreement between Government of India

    and Republic of Maldives. However, export of

    PUSA-1121 variety of non-basma rice was

    allowed w.e.f. 3.9.08.

    (ii) Exempon has been given for export of 10,000

    MTs per annum of Organic Non Basma Rice,

    duly cered by APEDA.

    (iii) Export of all variees of non-Basma rice

    made free w.e.f. 09.09.2011. Such export

    to be made by private pares from privately

    held stocks only through EDI ports. Export isalso allowed through non-EDI Land Custom

    Staons (LCS) on Indo-Bangladesh and

    Indo-Nepal border subject to registraon of

    quanty with DGFT.

    (iv) Through Nocaon No. 87 dated 05.12.2011,

    exempon has been given for export of

    21,200 MTs per annum of non-basma rice to

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    Bhutan.

    3. Basma Rice

    (i) Minimum Export Price for export of Basma

    rice was reduced from US$ 900 PMT to US

    $ 700 per ton vide Nocaon No.97 dated

    21.02.2012. Minimum Export Price on export

    of basma rice removed vide Nocaon No.

    6 dated 04.07.2012.

    (ii) Grain length of 6.61 mm and length to

    breadth(L/B) rao of 3.5 mm has been noed

    for export of Basma rice vide Nocaon

    No. 57/2009-14 dated 17.08.2010. (This was

    earlier Grain length of 7 mm and length to

    breadth(L/B) rao of 3.6 mm).

    (iii) PUSA-1121 variety of non-basma rice was

    categorized as Basma rice and it became

    exportable as basma rice subject to

    applicable condions.

    (iv) Export of Basma rice has been permied

    from all EDI ports vide Nocaon No. 97

    dated 21.02.2012. (Earlier it was permied

    only through the ports of Kandla, Kakinada,

    Kolkata, JNPT, Mundra and Pipavav).

    4. Pulses

    (i) Vide nocaon No. 15 (RE-2006)/2004-

    2009 dated 27th June, 2006 export of pulses

    had been prohibited inially for a period of

    six months but extended ll 31.3.2007 vide

    Nocaon No. 17 dated 3.7.2006.

    (ii) Export of pulses (except Kabuli Chana and

    10,000 MTs per annum of Organic Pulses, duly

    cered by APEDA) is prohibited ll 31.3.2013

    (Vide Nocaon No.109 dated 27.03.2012).

    (iii) Export of pulses to Sri Lanka under specic

    permission granted by DGFT is exempted

    from ban.

    (iv) Through Nocaon No. 87 dated 05.12.2011,

    exempon has been given for export of 1200

    MTs per annum of pulses to Bhutan.

    5. Wheat

    (i) Export of wheat and wheat products was

    prohibited vide Nocaon No. 33 dated 8 th

    October, 2007.

    (ii) Exempon has been given for export of

    5,000 MTs per annum of Organic Wheat, duly

    cered by APEDA.

    (iii) Export of wheat made free w.e.f. 09.09.2011.

    Such export will be only through EDI ports.

    Export is also allowed through non-EDI Land

    Custom Staons (LCS) on Indo-Bangladesh

    and Indo-Nepal border subject to registraon

    of quanty with DGFT.

    (iv) Through Nocaon No. 87 dated 05.12.2011,exempon has been given for export of 24,000

    MTs per annum of wheat to Bhutan.

    6. Wheat Products

    (i) Vide Nocaon No. 116 dated 3.7.2009

    (amended by Nocaon No. 41 dated

    18.05.2010 and Nocaon No. 61 (RE-

    2010)/2009-14 dated 20.07.2011) export

    of Wheat Flour (Maida), Semolina (Rava /

    Sirgi), Wholemeal aa and Resultant Aa was

    permied freely subject to a limit of 6,50,000

    MTs from 3.7.2009 to 31.3.2012 only from

    Customs EDI Ports. This permission has been

    extended upto 31.3.2013 through Nocaon

    No. 110 dated 02.04.2012.

    (ii) Wheat or Meslin Flour, ITC (HS) Code 1101

    has been exempted from restricon/ban vide

    Nocaon No. 31(RE-2012)/2009-14 dated

    04.02.2013.

    7. Coon Yarn(i) Export of coon yarn was subjected to

    registraon of contracts with the Texle

    Commissioner prior to shipment through

    Nocaon No. 38 dated 09.04.2010.

    (ii) Export of Coon Yarn (Tari code 5205, 5206

    & 5207) was Restricted vide Nocaon

    No. 14 dated 22.12.2010.

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    CHAPTER-4 External Sector and Indias Foreign Trade Policy (FTP) 2009-14

    (iii) Export of Coon Yarn (Tari code 5205,

    5206 & 5207) has been made free subject

    to registraon of contracts with DGFT with

    eect from 1.4.2011 through Nocaon No.

    40 dated 31.3.2011.

    8. Coon:

    (i) Export of coon under ITC(HS) code 5201

    & 5203 was prohibited as per Nocaon

    No. 102 dated 05.03.2012. The ban was

    revoked through Nocaon No. 106 dated

    12.03.2012. Presently export of coon is free

    subject to registraon of contract with DGFT

    as per Nocaon No. 17 dated 01.10.2012

    (amended by Nocaon No. 26 dated

    30.11.2012).

    (ii) Export of coon waste ITC(HS) code 5202

    has been made free w.e.f. 01.10.2011 as

    per Nocaon No. 78 dated 10.10.2011.

    Requirement of registraon of contract for

    export of coon waste has been dispensed

    with.

    (iii) Export of 5,000 bales of Assam Comilla coon

    has been exempted from any restricons on

    export of coon subject to registraon of

    contract with DGFT vide Nocaon No. 18

    dated 01.10.2012.

    9. Sugar

    (i) With eect from 01.01.2009 export of sugar

    was free subject to release order from the

    Directorate of Sugar, Department of Food &

    Public Distribuon, Govt. of India.

    (ii) Exempon has been given from the

    requirement of obtaining release orders from

    Directorate of Sugar for export of 10,000 MTs

    per annum of Organic Sugar, duly cered byAPEDA.

    (iii) With eect from 14.05.2012 export of sugar

    is free subject to registraon of quanty with

    DGFT.

    10. Onion

    (i) Upto December, 2010, the export of

    onion including Bangalore rose onion and

    Krishnapuram onion was allowed for export

    through 13 Naonal/State level cooperave

    markeng federaons subject to MEP xed

    by NAFED.

    (ii) Export of onion including Bangalorerose onion and Krishnapuram onion was

    prohibited through Nocaon No. 13 dated

    22.12.2010.

    (iii) Through Nocaon No. 24 dated 18.2.2011,

    the ban on export of onion including Bangalore

    rose onion and Krishnapuram onion was

    removed and was allowed for export through

    13 Naonal/State level cooperave markeng

    federaons subject to Minimum Export Price

    (MEP) xed by DGFT from me to me.

    (iv) Export of all variees of onions including

    Bangalore rose onion and Krishnapuram

    onion was again prohibited w.e.f. 09.09.2011.

    (v) Ban on export of onion including Bangalore

    rose onion and Krishnapuram onion was

    removed through Nocaon No. 75 dated

    20.09.2011 and it was allowed for export

    through 13 Naonal/State level cooperave

    markeng federaons subject to MEP xed

    by DGFT from me to me.

    (vi) Through Nocaon No. 116 dated 08.05.2012

    export of onion was allowed without Minimum

    Export Price ll the midnight of 02.07.2012

    which has been extended ll further orders

    through Nocaon No. 3 dated 29.06.2012.

    (vii) Value Added products of onion ITC (HS) Code

    0712 has been exempted from restricon/

    ban vide Nocaon No. 31(RE-2012)/2009-

    14 dated 04.02.2013.

    Milk & Milk Products

    (i) Export of milk and milk products was free ll

    18.02.2011.

    (ii) Export of milk powders (Skimmed Milk

    Powders, Whole Milk Powders, Dairy

    Whitener, Infant Milk Foods etc.), Casein

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    and Casein Derivave was prohibited ll

    further orders vide Nocaon No. 23 of

    18.02.2011. Transional arrangements under

    para 1.5 of Foreign Trade Policy were also

    made inapplicable on export of milk powders(Skimmed Milk Powders, Whole Milk Powders,

    Dairy Whitener, Infant Milk Foods etc.), Casein

    and Casein Derivave through Nocaon

    No. 25 of 24.02.2011.

    (iii) Through Nocaon No. 87 dated 05.12.2011,

    exempon has been given for export of 1600

    MTs per annum of milk powders to Bhutan.

    (iv) Ban on export of casein and casein products

    was removed vide Nocaon No. 112dated 01.05.2012 and it became exportable

    under licence. Casein and casein products

    ITC (HS) Code 3501 has been exempted

    from restricon/ban vide Nocaon No. 31

    (RE-2012)/2009-14 dated 04.02.2013.

    (v) Export of Skimmed Milk Powders (SMP)

    was made free vide Nocaon No. 2 dated

    08.06.2012.

    Trends of authorizaons issued under Export

    Promoon & duty neutralizaon scheme ofForeign Trade Policy during the period April-

    November, 2012

    During the period April 2012 November 2012,

    a total of 1,27,726 authorisations having CIF/

    Duty credit value of Rs. 1,95,531 crores and

    FOB/Export obligation of Rs. 4,78,622 crores

    have been issued. This represents a decrease of

    28.9% in number, an increase of 3.1% in CIF/Duty

    credit value and further a decrease of 22.9% in

    FOB value/EO over the corresponding periodof last year. A statement on total number of

    authorizations issued and their CIF/Duty credit

    & FOB values during April, 2012-November, 2012

    and during the corresponding period of last year

    is given in Table-4.1.

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    CHAPTER-4 External Sector and Indias Foreign Trade Policy (FTP) 2009-14

    Table 4.1

    Number and Value of various categories of Authorizaons issued during April - November 2012

    and its Comparison with Authorizaons issued during April - November 2011

    2011-12 2012-13

    April 2011 to November 2011 April 2012 to November 2012

    Category Number

    CIF / Duty

    credit

    (Rs. Crore)

    FOB

    (Rs. Crore)Number

    CIF / Duty

    credit

    (Rs. Crore)

    FOB

    (Rs. Crore)

    Advance Authorisaon 12722 120286 153770 12413 128146 160495

    Advance Authorisaon for

    Annual Requirements66 30046 32925 73 7395 8628

    DEPB-Post Export 90059 8251 188244 23274 1276 31061

    DFRC for Deemed Export 1 25 33 0 0 0

    Served from India scheme 1101 813 15 1322 982 1

    DFCE for Status Holder 1 1 0 0 0 0

    Duty Free Import Authorisaon

    (DFIA)2273 8512 10542 1898 5677 8555

    Duty Free Replenishment

    Cercate0 0 0 5 3 4

    Import licence for negave list

    of import items 946 6443 0 866 36439 0

    Target Plus Scheme 31 22 0 11 9 0

    Focus Market Scheme 5450 596 20431 12379 1062 30573

    Focus Product Scheme 34589 2232 80328 48151 3324 127669

    Vishesh Krishi and Gram Udyog

    Yojana15065 1515 33702 12667 1697 41369

    EPCG Concessional Duty 03% 9075 5556 39422 9590 5270 45364

    Zero duty EPCG Scheme 4349 5043 25616 2946 3767 23112

    Status Holder Incenve Scrip 874 352 35729 2079 367 1130

    Gem & Jewellery 26 6 54 52 117 661

    TOTAL 179628 189699 620811 127726 195531 478622

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    Annual Report 2012-13

    Chart 4.1

    Comparave Picture of Authorizaons issued during April-November 2012 vs April-November 2011

    Chart 4.2Comparave Picture of Value of Authorizaons issued during April-November 2011

    vs. April-November 2010

    Comparave picture of authorizaons issued & their CIF values during the period April-November for the

    years 2011-12 & 2012-13 is depicted through charts 4.1 & 4.2. Percentage share of authorizaons issued

    & their CIF value by category during April-November, 2012 is depicted through charts 4.3 & 4.4.

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    CHAPTER-4 External Sector and Indias Foreign Trade Policy (FTP) 2009-14

    Chart 4.3

    Percentage Share of Authorizaons by Category issued during April-November 2011

    Chart 4.4

    Percentage Share of Value of Authorizaons by Category issued during April-November 2011